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59 Metros Back to Normal

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Out of 350 metros evaluated across the country, 59 housing markets have returned to or have exceeded their last normal level of economic and housing activity, according to the latest National Association of Home Builders/First American Leading Markets Index.

Overall, markets nationwide are running at about 87 percent of their normal economic and housing activity. The index evaluates metro areas to see if they’re approaching or exceeding their previous normal levels of economic and housing activity. The index factors in average single-family permits, home prices, and employment levels for the past 12 months and then compares that to the market’s historical levels.

Topping the list of major metros on the Leading Markets Index is Baton Rouge, La., which is performing 41 percent better than its last normal market level. Other top performing markets are Honolulu, Oklahoma City, Austin and Houston, Texas, and Harrisburg and Pittsburgh, Pa. All of those markets are experiencing economic and housing activity that exceeds their previous norms.

Looking at the smaller metros, Odessa, Texas, and Midland, Texas, have seen economic and housing activity double when compared to activity prior to the recession. Other smaller metros that are also performing strong: Casper, Wy.; Bismarck, N.D.; and Grand Forks, N.D.

"The strong energy sector is at the forefront of the recovery and centered in many small and mid-sized markets in Texas, Louisiana, North Dakota and Wyoming," says NAHB Chief Economist David Crowe. "In fact, these four states account for eight of the top 10 markets on the LMI and 45 percent of the markets that are at or above normal."